cdmProvokes: B2C Marketing + User Experience + Content = who will win
Only those who understand that B2C Marketing, UX, and Content need to be merged to have a new product vision and forge a new culture will succeed, those who consider and operate them as silos will not.
The post-TV ecosystem (the OTT revolution?) is starting to take shape, and when observing this transition, there are a series of areas which are growing in importance.
From what I have experienced the focus is now on B2C Marketing, User Experience, and Content.
Starting from the revenues side at the moment it’s about three things:
Advertising, Sponsorships, Subscriptions / pay.
This model leads to an accelerating focus on B2C Marketing — as a way to acquire, convert and retain users — which is the foundation of any pay-based model as well as deep understanding of new advertising models through programmatic and new fan engagement models for sponsorships.
Building a reliable SCV (Single Customer View) is often seen as the top value you can extract and on which you can base a lot of your business in this area.
The User Experience part is defining how content reaches users, and users consume content, but also how users data are collected and used to make this possible and more relevant than ever.
A consolidated model for how entertainment OTT are operating regarding user experience is taking shape.
If you compare Netflix, Hulu and Amazon Video, you can recognize some recurring patterns.
I believe a true sports OTT experience need some work and a different discovery mechanism than entertainment and we are working actively on that.
The more general Web & Apps scenario is much more fragmented even if starting with the “mobile-first” paradigm a lot has been done to consolidate UX and UI models also in these cases.
OTT UX models seem more mature; which is due to the more limited scope and content formats available.
Content is king. Possibly the most used sentence in our industry in the latest period. Context is God added Gary Vaynerchuk.
Everything starts from content, and if in sports we always assume “content = rights,” there are a lot of new media entity trying to work around that dogma.
Another way to look at this is through the growing relevance of content formats.
We are all assuming video as the basis here, but increasingly popular content format like stories are partially redefining the landscape here.
What about technology?
Technology is clearly the key enabler of all that is happening. Moving from a consolidated TV model from a more evolving and experimental digital model would not have been possible without the fundamental contribution of new technologies.
Not all is yet completely solved, but I would say the fact that OTT can go at scale seems a reasonable safe assertion.
The more complicated part of technology will be around MarkTech and AdTech connected to measuring user behaviors.
We will hear more and more about DMPs, DSPs, Marketing databases, etc.
All the above sounds great, but often each area is seen in isolation, the Marketing guys don’t care that much about the User Experience or Content and vice-versa.
I think that’s a paramount mistake.
As I, myself, am not particularly good at anything specifically I always had the luxury of being able from a distance to see when different fields and cultures need to get closer and work closely together.
In the past, it was about moving Technology closer to User Experience than moving that closer to Content as the most powerful starting point for sports storytelling.
The new challenge is now mostly between the B2C Marketing part and the rest.
Understanding that only by creating a system that merges all fields into a streamlined operating model is key to the success of current and future OTT solutions.
Going more into the specifics of the marketing funnel the following list can help understand in more concrete terms what to do — also including a % of how important is the integration:
Acquisition (10%): users have not yet “touched” your product so that it will be a mix of AdTech and data intelligence based on the defined Consumer Value proposition. BUT with social more and more used for acquisition how your product is instrumented to provide content chunks for social distribution may be very relevant.
Conversion (30%): The moment users “land” on your product you have a limited amount of time and attention from them to convince them to get inside. How your “landing” experience is designed, what content you expose, how you follow up on each opportunity is the key element of success.
Retention (60%): Once users are inside your product it’s up to you to give them more reason to stay and consume more of what they care about but also discover new things they will like.
The standard target here is growing the ARPU (Average Revenue per User) which is the continuous exercise to increase users engagement.
These three different stages of the funnel require different marketing activations with dedicated tools and systems and tone of voice; you may need to hyper-specialize also concerning people you may want to hire.
At the basis of everything is the transparent contract between users and OTT platforms: “I will give you enough data about myself so that you can serve me better (not harass me with creepy techniques!)”
It should be clear now that marketing and product influence each other in a virtuous circle if managed properly and contribute jointly to the success of the operation.
So let’s work together, change our mindsets and merge our cultures!